The applicant’s plans should be discussed in view of their occupation, and reasonability of working beyond state Private / Company Pension Forecast Statement dated within the last 18 months, State Pension Statement dated within last 18 months which must be obtained by the customer directly as an actual on the open market in its current state and includes converted and refurbished properties. It is important the customer has checked if there are any other financial interests registered against the property (for example if there is a second charge or charging order) and if so that these will either be removed or postponed so that Halifax has a first charge. months income only will be used and all the income must be evidenced. Depending on the type of verification document provided, the customer will need to provide either one or two documents 5. The income to new build criteria. Or, to get a better indication you can apply for an Agreement in Principle, also known as a 'Mortgage Promise'. Mortgage products - we may have different types of mortgage products with different types of interest rates. into the costs. Getting the right mortgage or remortgage deal can save you £100s each month, but it can be a nightmare knowing how to get it spot on – especially during these uncertain times. buildings insurance arranged upon it. Some lenders will offer you a 95% mortgage if your parents put up their own property as security in addition to the property you’re buying. (AFIP), Latest Bank Statement (where paid gross) or Latest Pension or C. Unrepaired, designated defective properties under the Housing Act 1985, Housing (Scotland) Act 1987, Housing (Northern As long as one person applying has never owned a property before, you can apply for a First Time Buyer Mortgage with the Halifax. If your customer decides to use them, they will make a firms will apply an hourly rate and discuss all matters with customers up front prior to commencing any further Probationary Contract Where probationary contract of three months offered, at the end employer has option to determine if a permanent contract will be offered, key as 'probationary'. to act on their behalf. requirements and for anything you are unable to find, contact your BDM. so documents relating to the repayment plan must be received before a new mortgage offer can be considered. The market value figure will be used to determine the valuation fee and not the discounted purchase price. The list of acceptable reasons for a Further Advance are as follows: If your client is currently in or has been in arrears, please see our Arrears section. Any loan we make will be subject to a satisfactory property valuation by a surveyor of our choice. Please refer to our affordability calculator. The reversionary rate which applies to that product and the amount on it will be Halifax Homeowner Variable Rate. The fraud has been reported to the Police and Credit Industry Fraud Avoidance system (CIFAS) and can be evidenced by a crime reference number. People remortgaging can do so at up to 95%. 6 months. Protecting your mortgage  Further advance is subject to a minimum loan of £10,000. These include: Please Enter to access social media links. See, No more than two lodgers are acceptable providing that they are treated as a family member, i.e. Statement, Latest Bank statement or Thinking about buying your first home? The maximum loan against the customers share is subject to normal lending limits to a maximum of 90% for both second hand and new build purchases, unless the property is a new build conversion or renovation where we will restrict this to 80% of the share being purchased. The rule, which applied to its 90% mortgages, meant only 25% of the deposit could be gifted from a family member, with the rest needing to … The types of evidence which can be used to verify anticipated retirement income are as follows: The types of evidence which can be used to verify Pension Income already being received are as follows: For State Pension, War Pension and Widows Pension. Before exchanging contracts, you’ll need to have: Once you’ve exchanged contracts (in Scotland concluded missives) you can start to make arrangements for moving. Benefit Award Letter, Attendance Allowance would be required. The average price of a home in the UK is now £249,870. Opens in a new browser tab. Cash incentives for shared equity applications are acceptable provided the total value of the loan plus incentive savings, The gift is ‘not repayable’ and the person(s) gifting the deposit 'will hold no interest in the property following completion of the mortgage', Signed by the person(s) gifting the deposit, by birth/blood relative (for example an Aunty has to be via blood and not marriage), by marriage or civil partnership (including step children, adopted children and in-laws), The latest three months' UK bank statements or a UK passbook covering the latest three months' transactions showing For remortgages with additional borrowing or capital raising the maximum LTV is 85% (subject to product availability or unless stated otherwise). expandable section. If it becomes apparent that the Halifax mortgage cannot be registered as a first charge because of any third party interest in the property the new mortgage will not be able to proceed. conveyancer will be appointed based on property location: Lets your customer buy a home by sharing the equity with a third party. A Mortgage Account Fee is payable on completion. The fee is to cover the setting up, routine maintenance, and closing down of the mortgage account. Affordability must also include future changes to income and expenditure. Within our affordability calculation we may apply an affordability adjustment for some contractors to take into account likely business expenses. agreement or Letter from Who provides this policy? We'll consider lending you money to buy different types of property. The maximum loan on an interest only basis is 75%. How long the mortgage lasts will affect your monthly payments and the total cost of the mortgage. If possible, it’s a good idea to ensure gift money is seasoned when it comes time to funnel it into a down payment — this avoids the gift documentation needed too. Where there are no material changes to the mortgage the product transfer will be assessed on the customer’s budget assessment. Housing & COVID-19: Community Experiences – Future Opportunities The Housing Symposium is an educational and networking event focusing on some of the most pressing issues around homelessness and affordable housing in Halifax Regional Municipality. Please ensure that if the passport has a visa stamp and if this stamp has specific conditions attached that any The income requirement is calculated on the total of Basic, Overtime, Bonus and Commission for employed applicants or the latest year’s income for self-employed customers, The equity amount available in the property being mortgaged can be used to support Interest Only lending, This will be calculated using the valuation/property assessment carried out as part of the application and any existing or new additional borrowing elsewhere to be secured against the property must be declared and will reduce the equity amount available, If the property is to be a main residence there must be a minimum equity amount available at application of £300,000, The maximum Loan To Value (LTV) that can be on Interest Only is 50%; this means any borrowing above 50% LTV must be on a Capital & Interest Repayment basis up to the normal maximum lending where any element is Interest Only of 75% LTV, The term on any Capital & Interest Repayment element cannot exceed the term on Interest Only, If the property is on the ‘second home’ scheme the £300,000 minimum equity requirement does not apply and a maximum LTV of 75% can be on Interest Only, It is important the customer understands the requirement to sell their property at the end of the term to repay the Interest Only loan amount. However, it'll take you longer to … Customers classed as Mortgage Prisoners by the FCA due to their current mortgage being held with a closed book lender may be able to remortgage to the Halifax. Where the LTI shown is above 4.49x this may be restricted to 4.49x subject to the results of our credit score on an application. these applications. Pension, Public Holiday Pay (only if it forms part of basic pay and doesn't inflate income). the first instalment will not be released until footings and foundations stage has been reached. As a result, we'll not lend against properties where the lower of the valuation or purchase price is below £40,000. If you reach our pass mark, we’ll give you a certificate, so that you can show the seller you can get a loan. Any extra amount borrowed on the new mortgage must be on a product from the current range and applicable scheme. Please refer to your BDM for guidance. the sale. together does not exceed 95% of the value of the equity share being purchased. Your clients can borrow more money against the value of their home. If the customer is still letting the property, due to our policy rules, the request cannot be processed unless the See more details of the criteria in the Self Employed/Contractors Income Table. If your client does take a payment holiday they need to be aware that the interest usually charged will be added to the balance of the mortgage. You’ll need to complete your mortgage application with a mortgage adviser, 6. Jasjyot Singh, managing director of consumer and business banking at Halifax, said: “We are committed to helping people take their first step on to the property ladder and while there have been record levels of mortgage approvals over the past few months, raising a deposit is still hands down the biggest challenge for first-time buyers. Client must pay a 5% personal deposit (excluding any deposit provided by a builder or housing association). Customers can apply for a Self Build mortgage on Interest Only where a suitable repayment vehicle is in place. The maximum loan for standard new build 85%. We will be undertaking affordability checks on product transfers where there are material changes which affect affordability; where the customer is lending into retirement, This is a concession and it may not always be available. While we'll consider many types of property, we've a responsibility to ensure that a property is suitable security for a mortgage. How long has the customer been in both jobs? PLEASE NOTE: The affordability calculator will give a guide to the amount we would be willing to lend however, as no credit search is carried out please be aware that this amount is subject to change once the Decision in Principle (DIP) is keyed. duty, mortgage subsidies. The maximum age at the end of the mortgage term is 80 years for all lending. To help navigate the mortgage maze, here's our step-by-step guide outlining how to find the best mortgage deal for you, and where to look for a good mortgage broker. protection for the entire mortgage, the existing debt is refinanced to make the whole mortgage FCA Regulated. Where a customer sells their property and repays their existing mortgage before they complete on a new purchase, they will incur any Early Repayment Charges that apply. See below for restrictions in Scotland & Northern Ireland. A customer’s first monthly payment may be different as it will depend If early repayment charges apply to the product, refer to early repayment charges for more details. An application for consent to lease can be considered for armed forces personnel on their intended main residence We write to all customers when the mortgage starts to tell them when we will collect Please. Letter from letting agent confirming expected rental payment. Please ensure the premium(s) is specified at both DIP and full application. Monetary Policy Committee (MPC). As part of our commitment to make things easier Halifax Intermediaries will cover the standard costs for transferring EU/EEA Driving Licence Existing Halifax customers cannot port their existing mortgage product on to a self build mortgage. You cannot port a product onto a remortgage application from another lender, but can port to a remortgage of an unencumbered (mortgage free) property the customer already owns, where this will become their main residence. The mortgage property must not be on a Shared Ownership scheme. and the repayment must be keyed as a commitment. Intending to let existing property Any documentation requested must be received in sufficient time for the product transfer to be offered before the end of the month prior to the date of effect. You can also find these in our First Time Buyer Guide. by the secretary of state’ then the work permit and a letter from the employer confirming that they have Periodically, we will ask your customer to provide evidence of their repayment plan(s). Your Illustration and offer letter will say if any of your products are portable. www.bankofengland.co.uk. If the property being purchased is not changing but an amendment is required to the address keyed e.g. 5. Timber or metal framed buildings where the cavity, between frame & cladding, has been retrospectively filled with Repayment plans CANNOT be accepted if they include the name of anyone NOT named on the mortgage. For IT contractors on any income and other contractors whose income is more than £500 per day or £75,000 per annum: whether employed or self employed, we accept the gross value of the contract as evidence of income. This site is intended for UK residents unless otherwise stated. Applicants must not enjoy diplomatic immunity. The mortgage term must finish before a maximum age of 70 years rather than 80 years for repayment mortgages. Please remember it is your customer's responsibility to ensure they have sufficient funds to repay their outstanding are on our panel of conveyancers, and your customer must pay the legal charges, and any search fees, registration A child dependant would include a future dependant where the customer is expecting a baby or is in the process of adopting a child. Non-standard N A new build is defined as any property built, first occupied in its current state or significantly modernised, refurbished or altered within the last two years. provided. If the Second Home is for let for more than four months this will be treated as a Buy to Let. Applications may be considered where the customer is acquiring land with an existing property already in situ which Then you’ll need to speak to one of our mortgage advisers to continue with your full mortgage application. If the Buy to Let is mortgaged, or being mortgaged with Lloyds Banking Group, a valuation report on file less than 6 months old can be used to show expected rental income. The Net profit field should be completed as following: We require self employed income details to be entered for the latest 2 years trading.